PHILADELPHIA, Miss.--(BUSINESS WIRE)--Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three months ended March 31, 2016.
Net income for the three months ended March 31, 2016 was $1.526 million, or $0.31 per share-basic and diluted, down from $1.594 million, or $0.33 per share-basic and diluted for the same quarter in 2015. Net interest income for the first quarter of 2016, after the provision for loan losses, was $6.750 million, approximately 0.3% lower than the same period in 2015. The provision for loan losses for the three months ended March 31, 2016 was $61 thousand compared to $184 thousand for the same period in 2015. The decrease in the provision reflects management’s estimate of inherent losses in the loan portfolio including the impact of current local and national economic conditions. The net interest margin decreased to 3.12% in the first quarter of 2016 from 3.42% in the same period in 2015 primarily because of the decrease in yields on earning assets was greater than the decline in rates paid on interest bearing deposits.
Non-interest income increased in the first quarter of 2016 by $64 thousand, or 3.7%, while non-interest expenses increased $158 thousand, or 2.4%, compared to the same period in 2015. The increase in non-interest income was mainly due to an increase in service charges and fees of $54 thousand. Non-interest expense increased due to an increase in salary and benefit expense of $47 thousand, an increase in occupancy expense of $30 thousand and an increase in other operating expenses of $81 thousand.
Total assets as of March 31, 2016 increased to $1.002 billion, up $28.786 million, or 3.0%, when compared to December 31, 2015. Deposits increased by $36.885 million, or 4.9%, and loans, net of unearned income, decreased by $15.106 million, or 3.5%, when compared to December 31, 2015. The decrease in loans, net of unearned income, was due to payments on loans in excess of current loan demand. Non-performing assets decreased by $1.431 million to $16.632 million at March 31, 2016 as compared to December 31, 2015, because of a decrease in non-accrual loans and other real estate owned offset partially by increases in loans 90 days or more past due and still accruing interest.
During the first quarter of 2016, the Company paid dividends totaling $0.24 per share.
Citizens Holding Company (the “Company”) is a one-bank holding company and the parent company of The Citizens Bank of Philadelphia (the “Bank”), both headquartered in Philadelphia, Mississippi. The Bank currently has twenty-four banking locations in fourteen counties in East Central and South Mississippi. In addition to full service commercial banking, the Bank offers mortgage loans, title insurance services through its subsidiary, Title Services, LLC, and a full range of Internet banking services including online banking, bill pay and cash management services for businesses. Internet services are available at the Bank’s web site, www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the NASDAQ Global Market and is traded under the symbol CIZN. The Company’s transfer agent is American Stock Transfer & Trust Company. Information about Citizens Holding Company may be obtained by accessing its corporate website at www.citizensholdingcompany.com.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release regarding the Company’s financial position, results of operations, business strategies, plans, objectives and expectations for future operations, are forward looking statements. The Company can give no assurances that the assumptions upon which such forward-looking statements are based will prove to have been correct. Forward-looking statements speak only as of the date they are made. The Company does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions. The risks and uncertainties that may affect the operation, performance, development and results of the Company’s and the Bank’s business include, but are not limited to, the following: (a) the risk of adverse changes in business conditions in the banking industry generally and in the specific markets in which the Company operates; (b) changes in the legislative and regulatory environment that negatively impact the Company and Bank through increased operating expenses; (c) increased competition from other financial institutions; (d) the impact of technological advances; (e) expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions; (f) changes in asset quality and loan demand; (g) expectations about overall economic strength and the performance of the economics in the Company’s market area; and (h) other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.
|
Citizens Holding Company Financial Highlights (amounts in thousands, except share and per share data) |
||||||||||||||||
| For the Three Months Ending | ||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||
| 2016 | 2015 | 2015 | ||||||||||||||
| INTEREST INCOME | ||||||||||||||||
| Loans, including fees | $4,785 | $5,006 | $5,008 | |||||||||||||
| Investment Securities | 2,716 | 2,734 | 2,668 | |||||||||||||
| Other Interest | 79 | 34 | 30 | |||||||||||||
| 7,580 | 7,774 | 7,706 | ||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Deposits | 468 | 494 | 432 | |||||||||||||
| Other borrowed funds | 301 | 331 | 319 | |||||||||||||
| 769 | 825 | 751 | ||||||||||||||
| NET INTEREST INCOME | 6,811 | 6,949 | 6,955 | |||||||||||||
| PROVISION FOR LOAN LOSSES | 61 | 148 | 184 | |||||||||||||
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
6,750 | 6,801 | 6,771 | |||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||
| Service charges on deposit accounts | 887 | 989 | 887 | |||||||||||||
| Other service charges and fees | 586 | 563 | 532 | |||||||||||||
| Other non-interest income | 343 | 1,154 | 333 | |||||||||||||
| 1,816 | 2,706 | 1,752 | ||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||
| Salaries and employee benefits | 3,402 | 3,257 | 3,355 | |||||||||||||
| Occupancy expense | 1,329 | 1,272 | 1,299 | |||||||||||||
| Other non-interest expense | 1,914 | 1,779 | 1,833 | |||||||||||||
| 6,645 | 6,308 | 6,487 | ||||||||||||||
| NET INCOME BEFORE TAXES | 1,921 | 3,199 | 2,036 | |||||||||||||
| INCOME TAXES | 395 | 869 | 442 | |||||||||||||
| NET INCOME | $1,526 | $2,330 | $1,594 | |||||||||||||
| Earnings per share - basic | $0.31 | $0.48 | $0.33 | |||||||||||||
| Earnings per share - diluted | $0.31 | $0.48 | $0.33 | |||||||||||||
| Dividends Paid | $0.24 | $0.24 | $0.23 | |||||||||||||
| Average shares outstanding-basic | 4,875,079 | 4,877,614 | 4,876,114 | |||||||||||||
| Average shares outstanding-diluted | 4,885,094 | 4,879,911 | 4,876,713 | |||||||||||||
| For the Period Ended, | ||||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Period End Balance Sheet Data: | ||||||||||||||||
| Total assets | $1,002,291 | $973,505 | ||||||||||||||
| Total earning assets | 912,969 | 894,765 | ||||||||||||||
| Loans, net of unearned income | 414,476 | 429,582 | ||||||||||||||
| Allowance for loan losses | 5,009 | 6,474 | ||||||||||||||
| Total deposits | 790,290 | 753,405 | ||||||||||||||
| Long-term borrowings | 20,000 | 20,000 | ||||||||||||||
|
Shareholders’ equity |
88,502 | 86,425 | ||||||||||||||
| Book value per share | $18.15 | $17.73 | ||||||||||||||
| Period End Average Balance Sheet Data: | ||||||||||||||||
| Total assets | $983,130 | $945,270 | ||||||||||||||
| Total earning assets | 900,989 | 863,829 | ||||||||||||||
| Loans, net of unearned income | 419,057 | 412,161 | ||||||||||||||
| Total deposits | 763,831 | 725,116 | ||||||||||||||
| Long-term borrowings | 20,000 | 20,000 | ||||||||||||||
|
Shareholders’ equity |
87,457 | 84,250 | ||||||||||||||
| Period End Non-performing Assets: | ||||||||||||||||
| Non-accrual loans | $12,913 | $14,423 | ||||||||||||||
| Loans 90+ days past due and accruing | 336 | 67 | ||||||||||||||
| Other real estate owned | 3,490 | 3,573 | ||||||||||||||
| As of | ||||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2016 | 2015 | |||||||||||||||
|
Year to Date Net charge-offs as a percentage of average net loans |
0.36% | 0.03% | ||||||||||||||
| Year to Date Performance Ratios: | ||||||||||||||||
| Return on average assets(1) | 0.69% | 0.80% | ||||||||||||||
| Return on average equity(1) | 7.69% | 9.01% | ||||||||||||||
| Year to Date Net Interest | ||||||||||||||||
| Margin (tax equivalent)(1) | 3.12% | 3.33% | ||||||||||||||
| (1) Annualized | ||||||||||||||||